Benefit claimants set up 70 new businesses a day

29th September 2015

New statistics show that over the last 4 years entrepreneurial benefit claimants have set up 70 businesses on average every working day across Great Britain.


Since 2011, the New Enterprise Allowance (NEA) has enabled 73,290 business starts. This scheme offers benefit claimants that have solid business ideas with financial support and a business mentor. It supports claimants to become their own boss or, potentially, future employers.


Employment Minister Priti Patel said:


“We want everyone in all parts of the country to benefit from the opportunities being created by our growing economy. We are supporting people, regardless of their background or where they are from, who want to work hard and get on.”


“This scheme helps claimants with a good business idea to become their own boss so they can support themselves and their families, and turn their lives around.”


The UK currently stands as the best place in Europe and one of the places in the world to start a business. However, there is a poor representation of people from disadvantaged communities that seize the opportunity to become their own boss.


In response, the government has launched a DWP-led review, championed by leading entrepreneur and business women Michelle Mone OBE into how to support more people from these areas to set up their own business. This may include people from areas with higher levels of unemployment, entrenched worklessness or lower levels of education.


More information


The New Enterprise Allowance supports jobseekers, lone parents and people on sickness benefits with a good idea to set up their own business. It is available to:

• people over 18 who are claiming Jobseeker’s Allowance (JSA)

• people who are claiming Income Support as lone parents or who are sick

• people on Employment and Support Allowance (ESA)

• eligible Universal Credit claimants

• dependent partners of ESA or JSA claimants

People on the scheme get expert help and advice from a business mentor who will help them develop their business idea and write a business plan. If the business plan is approved, they are eligible for financial support payable through a weekly allowance over 26 weeks up to a total of £1,274.


Find out more here